Columbia Banking System (NASDAQ:COLB) vs. First Bank (NASDAQ:FRBA) Financial Comparison

First Bank (NASDAQ:FRBA) and Columbia Banking System (NASDAQ:COLB) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.

Institutional & Insider Ownership

64.9% of First Bank shares are owned by institutional investors. Comparatively, 92.5% of Columbia Banking System shares are owned by institutional investors. 13.1% of First Bank shares are owned by insiders. Comparatively, 0.6% of Columbia Banking System shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares First Bank and Columbia Banking System”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bank	$245.83 million	1.80	$43.66 million	$1.69	10.41
Columbia Banking System	$3.21 billion	2.57	$550.00 million	$2.51	11.63

Columbia Banking System has higher revenue and earnings than First Bank. First Bank is trading at a lower price-to-earnings ratio than Columbia Banking System, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares First Bank and Columbia Banking System’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Bank	17.45%	9.57%	1.06%
Columbia Banking System	19.96%	11.33%	1.31%

Dividends

First Bank pays an annual dividend of $0.36 per share and has a dividend yield of 2.0%. Columbia Banking System pays an annual dividend of $1.48 per share and has a dividend yield of 5.1%. First Bank pays out 21.3% of its earnings in the form of a dividend. Columbia Banking System pays out 59.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Columbia Banking System has increased its dividend for 4 consecutive years. Columbia Banking System is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

First Bank has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, Columbia Banking System has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for First Bank and Columbia Banking System, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bank	0	2	3	0	2.60
Columbia Banking System	0	8	5	0	2.38

First Bank presently has a consensus price target of $19.67, suggesting a potential upside of 11.81%. Columbia Banking System has a consensus price target of $33.75, suggesting a potential upside of 15.66%. Given Columbia Banking System’s higher probable upside, analysts plainly believe Columbia Banking System is more favorable than First Bank.

Summary

Columbia Banking System beats First Bank on 14 of the 17 factors compared between the two stocks.

About First Bank

First Bank provides various banking products and services to small to mid-sized businesses and individuals. The company accepts various deposits, including non-interest-bearing demand deposits, interest bearing demand accounts, money market accounts, savings accounts, and certificates of deposit, as well as commercial checking accounts. It also offers various loan products comprising commercial and industrial loans, which include line of credit, inventory, equipment, and short-term working capital financing; commercial real estate loans, such as owner-occupied, investor, construction and development, and multi-family loans; residential real estate loans comprising residential mortgages, first and second lien home equity loans, and revolving lines of credit; and consumer and other loans consists of auto, personal, traditional installment, and other loans. The company also provides electronic banking services, including Internet and mobile banking, electronic bill payment, and banking by phone; ATM and debit cards, and wire and ACH transfer services; remote deposit capture; and cash management services, as well as engages in the capital markets activities. It operates full-service branches in Cinnaminson, Delanco, Denville, Ewing, Fairfield, Flemington, Hamilton, Lawrence, Monroe, Pennington, Randolph, Somerset, and Williamstown, New Jersey; Doylestown, Trevose, Warminster, and West Chester, Paoli, Malvern, Coventry, Devon, Lionville, and Glen Mills Pennsylvania; and Palm Beach, Florida. First Bank was incorporated in 2007 and is headquartered in Hamilton, New Jersey.

About Columbia Banking System

Columbia Banking System, Inc. operates as the holding company of Umpqua Bank that provides banking, private banking, mortgage, and other financial services in the United States. The company offers deposit products, including business, non-interest bearing checking, interest-bearing checking and savings, money market, and certificate of deposit accounts; and insured cash sweep and other investment sweep solutions. It also provides commercial lending products, such as commercial lines of credit and term loans, accounts receivable and inventory financing, international trade finance, commercial property loans, multifamily loans, equipment loans, commercial equipment leases, real estate construction loans and permanent financing, and small business administration program financing, as well as capital markets. In addition, the company offers wealth management comprising financial planning, investment, trust, and insurance; treasury management, which includes digital and mobile banking solutions, ACH, wires, positive pay, remote deposit capture, integrated payments, integrated receivables, lockbox, cash vault, real-time payments, commercial card, and foreign exchange and international banking related products, as well as merchant services; and brokerage services, residential real estate loans and consumer loans. It serves its products to corporate, institutional, small business, and individual customers. The company was founded in 1953 and is headquartered in Tacoma, Washington.